Matador Mining Ltd (ASX:MZZ, OTCQX:MZZMF) has raised an additional A$496,000 via an existing large shareholder after raising A$4.5 million in a recent placement.
The company placed an additional 4,313,044 shares at A$0.115 per share to the shareholder and has now raised gross proceeds of A$5.0 million.
Matador will now turn its attention to a share purchase plan (SPP) for shareholders to participate at the same issue price as the placement to raise up to A$1 million.
Use of funds
Money raised will be used to:
- advance greenfield exploration with a focus on drill target generation in the new high-priority Malachite target area of the Cape Ray Project in Newfoundland, Canada, and additional high-priority targets including Bunker Hill, Grandy’s and Hermitage;
- advance greenfield exploration targets;
- start the inaugural diamond core drill program on the priority Malachite drill targets; and
- general corporate working capital purposes.
Confidence in strategy
Matador CEO Sam Pazuki said of the extra placement that it showed confidence in the work MZZ was doing.
“Having the continued support of one of our largest shareholders, to go along with the support we recently received from many other large existing and new shareholders is a tremendous vote of confidence in our strategy to grow our mineral resource base through major new discoveries,” Pazuki said.
“We are grateful for this support and will be working tirelessly to ensure every dollar invested has the intention of unlocking value for shareholders.
"We look forward to retail shareholders taking up the opportunity to invest alongside these institutional investors via the SPP and supporting the company as we continue advancing our business in the emerging, top-tier jurisdiction of Newfoundland, Canada.”